Shares of IndusInd Bank experienced a nearly 3% rise on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Thursday, following the announcement of a remarkable 22% net profit growth for the September quarter. The bank reported profits surging to Rs 2,202 crore ($294 million), up from Rs 1,805 crore ($241 million) in the same period last year. According to InvestingPro data, this impressive performance is reflected in the bank's P/E ratio of 10.07 and its adjusted P/E ratio for LTM2023.Q2 of 9.93.
This increase was primarily driven by an upswing in core income and a reduction in overall provisions, which fell to Rs 973.81 crore ($130 million) from Rs 1,141.05 crore ($152 million) last year. The bank's stock prices peaked at Rs 1,459.75 ($19.49) on BSE and Rs 1,459.30 ($19.49) on NSE. IndusInd Bank has been a prominent player in the Banks industry, as indicated by InvestingPro Tips, and has been trading near a 52-week high, which aligns with the InvestingPro data indicating a Price % of 52 Week High of 52.7%.
The bank's core net interest income saw an impressive 18% increase to Rs 5,077 crore ($678 million), propelled by a significant 21% boost in advances. The net interest margin also expanded from last year's figure of 4.24% to this year's figure of 4.29%. The bank has been able to consistently increase its earnings per share, as per InvestingPro Tips, which is a positive sign for potential investors.
Other income for the quarter increased to Rs 2,282 crore ($305 million), compared with Rs 2,011 crore ($269 million) last year. In terms of asset quality, there was an improvement as the gross non-performing assets ratio dropped to 1.93% from 2.11% in the previous year, further contributing to the bank's profitability.
The financial results were announced amid calls from Arvind Virmani, a member of NITI Aayog, for business taxation reforms. Investors should keep in mind that the bank's revenue for LTM2023.Q2 was $90.71M, according to InvestingPro data, but it also experienced a revenue growth decrease of -24.9%. For more insights like these, interested readers can explore the InvestingPro product that includes additional tips and real-time metrics.
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